Market
Published on 5 November 20268 min read
Right of superficies in Belgium: how it works
The Immolytics editorial team
A right of superficies lets one person own a building on someone else's land. Land and building can have different owners for a period set out in the deed. If you buy or sell a home built on such land, read the deed first. It decides most of the value.
What is a right of superficies?
A right of superficies is a property right. The holder may build on another person's land, or keep an existing building there, and owns that building. The landowner keeps the ground. The right is not an ordinary lease. It is set out in a notarial deed and it can be enforced against third parties.
This set-up exists across Belgium. You see it where municipalities or public bodies make land available, where a farmer lets a family build a house on a plot, where a private owner gives up part of a garden, and in some affordable housing projects. The reason is usually the same: the holder does not pay a full land price, or the landowner does not want to sell the land.
Do not confuse it with a long lease of the land, known as emphyteusis. The two rights look alike. Emphyteusis gives full use and enjoyment of a property. Superficies is about having buildings or plantations on land that belongs to someone else. The glossary has short definitions of both terms. Here we go further and look at what it means in practice.
How does a right of superficies work and how long does it last?
A right of superficies works through an agreement between the landowner and the holder. The length is written in that agreement, within the maximum the law allows. There is no single term that applies to everyone. You always read the duration in the deed itself, and it is the first thing to check.
What does such a deed usually cover? A good agreement settles these points:
- how long the right lasts and how it ends;
- the payment, often a yearly fee and sometimes a single sum at the start;
- what the holder may build, renovate or demolish;
- who pays for maintenance and insurance;
- what happens to the building when the right ends;
- whether the right can be transferred or sold, and on what terms.
The payment differs a lot from one case to the next. There is no standard amount, so we do not quote one. Always ask whether the fee is fixed, whether it is indexed and whether it can be revised. A fee that rises every year changes the real cost of living in the home.
The right can end when the term runs out, when land and building come into one hand, when the holder gives it up, or when a court ends it because one side did not meet its duties. Check in the deed what follows in each case. A notary can explain it for your situation.
Who owns what, and who pays which taxes?
While the right lasts, the holder owns the building and the landowner owns the land. When the right ends, the building normally goes to the landowner, unless the deed says otherwise. That last point is the heart of the matter. The deed may provide a payment for the building, or it may not.
This matters a great deal to a buyer. A home with a long right still to run is a different thing from a home whose right ends soon. As the end date comes closer, it gets harder to sell and often harder to get a loan. Lenders look at the remaining term, so ask early what your lender accepts. General explanations about loans are on the page about mortgage rates. That is information, not advice about any particular lender.
For taxes, the split is something you fix in the deed. Usually the holder carries the costs linked to the building, such as upkeep, insurance and the property tax on the building. Who pays which tax depends on the deed and on the rules of the Region. Registration duties are a regional matter, so they differ in Flanders, Wallonia and Brussels. For that reason we do not write down a rate. The federal Finance service publishes general information, and the notary works out the figures for your file.
The notary registers the deed. A right that is not properly drawn up and recorded can cause trouble at a later sale or in a dispute with the landowner.
What are the pros and cons when buying?
The main advantage is a lower entry price. The main drawback is that you do not own everything. Because you do not buy the land, the purchase price is usually lower than for a similar home with its own land. That can make a sought-after area affordable.
The drawbacks are concrete:
- the right ends on a set day, and the value of your home falls as that day gets closer;
- the yearly fee keeps running, sometimes with indexation;
- you may need permission for major works if the deed says so;
- financing is harder when little time is left;
- the pool of buyers is smaller at resale, because not everyone wants or is able to accept this.
If you want superficies as a long-term solution, a long term and clear rules on the end are essential. If you want to live there for a short time and resell, the risk is bigger. Also work out the total cost over the whole term: the price, the yearly fee, upkeep and what you get back at the end. Then you can compare that sum with buying a home with land. With the comparison tool you can set municipalities side by side, and the price map shows how prices of ordinary homes look nearby. That gives you a reference to judge the benefit of the lower entry price.
Selling or valuing a home on superficies land
When you sell a home on superficies land, you really sell the right together with the building. Buyers look mostly at the time left. The shorter it is, the more the price comes under pressure. A long term and a fair fee keep the value higher.
Prepare your sale with these steps:
- Get the deed and read the clauses on transfer. Sometimes the landowner has a pre-emption right or must give consent.
- Check the time left and what happens to the building at the end.
- Gather the documents every seller needs, such as the energy certificate. For the rules on the EPC, see the separate page, because the duties differ by Region.
- Have the home valued with the superficies right in mind.
- Talk to the notary about how the right is transferred.
Valuing a home on superficies land is harder than valuing an ordinary home, because comparable sales are rare. An online valuation gives a first guide based on the municipality. Use it as a starting point, not as a final price. You can start the valuation for your municipality, and look at a fuller valuation report if you want a detailed overview. Do not expect such a tool to account for the superficies right automatically. Add the effect of the remaining term yourself, or ask an expert to assess it.
If you want to know what homes in your municipality cost, the property prices give an official, dated basis. A home with a superficies right usually sits below that median value, but how far below depends entirely on the deed. If you simply want to look for opportunities, you can also browse the top municipalities, or use all the tools on the site to run scenarios.
What should you check before you sign?
Check above all the deed, the term and the end of the right, and let a notary guide you. This is not a formality. A few sentences in the deed can change the value of the home by a very large amount, and afterwards there is little you can do.
Use this checklist as a basis for your talk with the notary:
- What is the end date, and can the right be extended?
- Do I receive a payment for the building when the right ends?
- How is the yearly fee calculated and adjusted?
- May I renovate, extend or let the home?
- May I resell the right, and does the landowner have a pre-emption right?
- What happens in case of bankruptcy, death or inheritance?
- Does my lender accept this set-up?
Never decide under time pressure. A seller who says the deed is standard gives you no guarantee. Read it yourself, have it checked and ask for an explanation of every unclear point. That way you know beforehand what you buy, what it costs over the whole term and what you can sell later.
Frequently asked questions
How long does a right of superficies last?
The length is set in the deed and cannot go beyond the maximum term fixed by law. Within that limit, the landowner and the holder agree the term themselves. Check the end date and the option to extend with the notary.
What are the disadvantages of a right of superficies?
The right ends on a set date and you do not own the land. As a result the value of the home falls as the end approaches, and financing or resale gets harder. A yearly fee often keeps running as well.
How much does a right of superficies cost?
The cost depends on the deed: a single sum, a yearly fee or a mix of both. Notary costs and registration duties come on top, and they differ by Region. Ask the notary for a calculation for your file.
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